[CX Tribe] 1 February 2022 – How to Improve NPS / Retention Vs Acquisition 🥊

[CX Tribe] 1 February 2022 – How to Improve NPS / Retention Vs Acquisition 🥊

Picture of Adam Ramshaw
Adam Ramshaw
Adam Ramshaw has been helping companies to improve their Net Promoter® and Customer Feedback systems for more than 15 years. He is on a mission to stamp out ineffective processes and bad surveys.

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Aaaand, we’re back… 

If you’re not from Australia you may be surprised to hear that business pretty much shuts down here from late-December until after Australia Day (26 January).

It’s like August in Europe or July in the US. It’s summer, the kids are on a long break from school and business noticeably slows down.

Well, all that’s behind us now (😥) and 2022 is on – so here’s the first CX Tribe for the year.

[Best Practices]
The 7 Steps You Need To Improve Your Net Promoter Score

Generating a Net Promoter Score (or CSAT or CES) is not that hard.

But once the data is in, how do you go about improving it?

For more than 20 years I’ve worked with companies on customer experience, customer feedback and business improvement processes. So, I spent part of the the break identifying the (repeatable) things I’ve seen successful organisations do to improve their NPS (or CSAT or CES) year after year.

Check out the list and let me know if I’ve missed anything. Some folks on LinkedIn have already helped me improve the post so I’m all ears.

Improve NPS Here

[Business Focus]
The Marketer’s Dilemma: Acquisition vs. Retention

When looking for great CX Tribe content I scan lots of sources, then read headlines, and body content. Finally, and only if it’s good, do I check for the author’s name. 

Some people are disproportionately represented in the by-line of “good stuff”. Annette Franz is one.

We all agree that retention is cheaper and better for business but then proceed to spend most of our time on acquisition.

Annette makes some great suggestions on why it happens (and what to do) but I have one to add: 

>> Nobody rings a bell when a customer doesn’t leave. <<

Retaining a customer has exactly the same business impact as making a new sale – more revenue.

But it’s harder to know when a marketing intervention stops a customer (or group of customers) leaving than when a new customer signs up.

So, we spend lots of time ringing bells on acquiring new customers because it’s easier, not because it’s better.

Yes, the ROI for retention is harder to calculate. The reporting is harder to build. But, however difficult, it needs to be done.

Here’s a (free) tool I created a few years ago to help estimate the business value of changes in retention. Maybe it will help you in your business.

The Return on Retention Estimator (Catchy name hey!)